FINRA Clarifies Proposed Changes to Outside Activities Rule

Posted on May 12th, 2025 at 2:15 PM
FINRA Clarifies Proposed Changes to Outside Activities Rule

From the desk of Jim Eccleston at Eccleston Law

FINRA released a statement this week addressing misconceptions surrounding its proposed updates to the rules governing outside business activities by associated persons of broker-dealers. According to FINRA’s Weekly Update, Regulatory Notice 25-05 aims to streamline current requirements and ease unnecessary regulatory burdens.

FINRA emphasizes that the proposal introduces no new reporting or approval obligations. Instead, the proposal clarifies that personal investments in non-securities remain excluded from reporting requirements. Additionally, the proposal does not create new responsibilities for broker-dealers concerning unaffiliated investment adviser activities, nor does it impose obligations on broker-dealers for activities conducted within affiliated entities, such as investment advisers, insurance companies, or banks.

FINRA encouraged industry participants to review the full text of Regulatory Notice 25-05 and submit feedback based on the actual content rather than mischaracterizations. The comment period remains open through May 13.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

March 4, 2026
Modern Fraud Schemes Escalate in Scale and Sophistication

A recent panel discussion at the Financial Services Institute OneVoice conference in San Diego highlighted how rapidly evolving fraud schemes continue to victimize both retail and wealthy investors.

March 3, 2026
FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades

The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co.

March 2, 2026
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval.